Cereplast plans to reduce in-house manufacturing capacity
Cereplast, Inc, a developer of proprietary bio-based, sustainable plastics, announced its new strategic plan that will leverage its proprietary product development capabilities and marketing strengths. In addition, Cereplast will enter into manufacturing supply agreements with large plastics compounders that will dramatically reduce the cost to produce plastic resins and provide sufficient capacity to service substantial new contracts with major customers such as Georgia-Pacific and Dorel.
Frederic Scheer, Chairman and CEO of Cereplast said, “To accelerate our growth, Cereplast will focus its efforts on the product development and marketing core strengths that have propelled us into a leadership position in proprietary bio-plastics.”
Cereplast bio-plastic resins are specifically formulated for compatibility with existing plastic manufacturing processes. Because of a worldwide excess of plastics compounding capacity, Cereplast will reduce costs by exiting the manufacturing business and contracting with large compounders to produce its bio-based resins. The company will transition to higher yield aspects of the business, such as product development and assisting customers with the implementation of bio-based plastic solutions.